December 2017

How Understanding Cultural and Behavioral Economics Can Make You A Better Gift-Giver

To echo the sentiment of American anthropologist William Mazzarella, brands are much like gift-givers. Both are interested in maximizing some form of “utility” that follows an act of giving. For conventional gift-givers (like the millions currently finalizing their holiday shopping), this utility is a form of shared happiness between the giver and the recipient, while for brands this utility takes the form of financial gain (for the brand) and emotional investment in the brand (for the gift-recipient). In order to be the ‘perfect’ gift-giver however, one needs to have a good understanding of how the gift-recipient derives meaning (and hence value) from the gifts that they receive, so that utility can be sufficiently maximized. Makes sense so far? Click on the photo below to read more.